Subsidised routers walk out of their contract area. Trial and restricted SIMs get resold out of market. SIMs move into devices they were never sold for. By the time HLR barring or manual ops catch up, the revenue is leaking and the evidence is thin. Device apps can't help — the devices that matter most (CPE, modems, IoT) don't run apps.
The SIM sees serving-cell context (its location signal), the device identity it’s inserted in (IMEI/TAC), and every boot and network event. An applet there can report those signals continuously — and enforce the consequence directly, by modifying SIM files to suspend service until conditions are met or a server restores it.
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Revenue leakage cut off at the source, policy enforced uniformly across fleets that apps can't reach, and an audit trail strong enough for partners, auditors, and regulators.